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Case 5 (Network Marketer)

 

Brenda is a MLMer (Network Marketer). Unfortunately she is a "latecomer" to MLM business, so it is hard for her to find and recruit new MLMers (necessary condition for the success in MLM). She starts to search for opportunities and information on the Internet. A one day she finds MLMer's Survival Guide . After careful reading and discussions with her friends she decides to follow the way proposed in the Guide. She chooses the MLM companies with wide spreads between retail and wholesale prices and maximal commissions. She chooses the companies were the total value  is at least 15%. Then Brenda designs her own payment scheme:

5%-1st level

4%-2nd level

3%-3rd level

2%-4th level.

 

According to this scheme she receives 1% from each sale plus residual income from commissions.

Date

Event

Brenda’s actions

5/20/00

AP Settings

Set up AP settings: 5-levels, type=%, period=1month

5/22/00

Announcement of AP

Brenda announces her AP.

May

First affiliates

Brenda registers the first 20 affiliates with ID=1...20 and Reference ID=0.

June

The first sales from AP and  new affiliates 

Brenda registers 200 new affiliates on the second level (each old affiliate referred 10 new affiliates).

Affiliates on the first level generate sales on average of $200 each. Brenda pays $200 (20*5%*$200) to the affiliates and has $400 profit. 

July

New affiliates, sales and payments

Brenda registers 2,000 new affiliates on the third level (each of second level's affiliate referred 10 new affiliates).

Affiliates on the first two levels generate sales on average of $100 each. Brenda pays $1900  to the affiliates and has $1400 profit. 

August

New affiliates, sales and payments

Brenda registers 10,000 new affiliates on the forth level (each of third level's affiliate referred 5 new affiliates).

Old affiliates generate sales on average of $40 each. Brenda pays to affiliates $10,360 and has $2,960 profit.

September

New affiliates, sales and payments

Brenda registers 30,000 new affiliates on the fifth level (each of forth level's affiliate referred 3 new affiliates).

Old affiliates generate sales on average of $20 each. Brenda pays to affiliates $33,180 and has $3,480 profit.

October

New sales and payments

Brenda registers 60,000 new affiliates on the sixth level (each of fifth level's affiliate referred 2 new affiliates).

Old affiliates generate sales on average of $10 each. Brenda pays to affiliates $58,590 and has $4,740 profit.

November

Net's growth stabilization. New sales and payments

Affiliates generate sales on average of $5 each. Brenda pays to affiliates $71,295 and has $5,370 profit.

December

Sales and payments

Affiliates generate sales on average of $5 each. Brenda pays to affiliates $71,295 and has $5,370 profit.

 

 

Copyright © 2001 Apfa Group
Last modified: March 09, 2001